Nvidia Gains 0.6% Despite Spy-Affair Lawsuit as Street Sees 15% Odds Huang Is Ousted
Updated
Updated · CNBC · Nov 10
Nvidia Gains 0.6% Despite Spy-Affair Lawsuit as Street Sees 15% Odds Huang Is Ousted
3 articles · Updated · CNBC · Nov 10
Summary
Nvidia rose 0.6% in premarket trading Tuesday, clawing back part of Monday’s more than 4% drop as investors assessed fallout from allegations involving CEO Jensen Huang.
A class-action suit filed in federal court in San Jose alleges Nvidia and Huang misled shareholders about his affair with Megaspeed executive Alice Huang and the company’s ties to the customer.
The scrutiny intensified after the New York Times reported U.S. officials concluded Alice Huang was a Chinese intelligence asset who may have helped steer advanced Nvidia AI chips to China; Trump said the FBI is investigating.
Dan Ives said investors are pricing about a 15% chance Huang is removed, versus an 85% chance he stays, with a board investigation expected to take 4 to 6 weeks and weigh on the stock.